Hiring bright, but talent crunch persists
The latest Employment Outlook Survey by ManpowerGroup shows that India’s Net Employment Outlook (NEO) for the second quarter of 2026 has reached a record high of 68%
New Delhi: Indian employers have reported strong hiring intentions for the April–June quarter, driven by rising business confidence and resilient domestic demand, according to a survey released on Tuesday.
The latest Employment Outlook Survey by ManpowerGroup shows that India’s Net Employment Outlook (NEO) for the second quarter of 2026 has reached a record high of 68 per cent, marking an increase of 17 percentage points from the previous quarter and 24 points year-on-year.
The Net Employment Outlook is calculated by subtracting the percentage of employers expecting a decline in hiring from those anticipating an increase. The survey covered more than 3,000 employers across India and was conducted between January 1 and February 3, 2026.
The report attributes the positive hiring sentiment to a combination of GST reforms, strong economic growth projections for 2026, and improving global trade prospects, including potential India–EU agreements and easing trade tensions.
Despite the robust hiring outlook, companies continue to face difficulties finding skilled talent. According to the survey, 82 per cent of organisations reported challenges in locating workers with the required skills, reflecting a widening talent gap.
Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, said the data reflects a “dual reality” of strong hiring intent alongside rising talent scarcity. He noted that AI adoption and digital transformation will increasingly influence hiring decisions.
Among sectors, Finance and Insurance reported the strongest hiring outlook at 71, rising 8 points from the previous quarter and 26 points from a year earlier. In terms of absolute hiring volume, the Automotive sector expects the largest workforce additions, followed by Information Technology and IT services.Regionally, all four parts of India expect staffing growth, with the North region recording the strongest outlook at 70.Meanwhile, Hospitality reported the most cautious hiring outlook at 31 per cent.The survey also found that 87 per cent of organisations are already using AI in hiring, onboarding, or employee training, although expectations remain measured regarding its overall impact.
